Air Products and Chemicals (APD) AI Stock Analysis

• Market Cap: $65.03B
• Dividend Yield: 2.44%
• Average Volume (3M): 833.15K
• Price to Earnings (P/E): 42.0
• Beta (1Y): 0.78
• Revenue Growth: -0.38%
• EPS Growth: -39.53%
• Country: US
• Employees: 21,850
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Chemicals - Specialty
• EPS (TTM): 3.09
• Shares Outstanding: 222,553,630
• 10 Day Avg. Volume: 656,814
• 30 Day Avg. Volume: 833,154
• PEG Ratio: 0.26
• Price to Book (P/B): 3.89
• Price to Sales (P/S): 5.47
• P/FCF Ratio: -21.03
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 6.73
• Enterprise Value/Gross Profit: 21.11
• Enterprise Value/Ebitda: 24.82
• 1Y Price Target: $329.91
• Price Target Upside: 13.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 68 Neutral
• Price Target: $317.00 ▲(8.83% Upside)

Air Products and Chemicals' overall stock score reflects a solid financial performance with operational efficiency and profitability. However, challenges such as fluctuating revenues, increasing debt levels, and a stretched valuation weigh on the score. Positive earnings call outcomes and strategic corporate events provide some optimism for future growth.

Positive Factors

Investment Plans

The company plans to invest significantly in its core business and optimize projects to enhance future profitability.

Leadership

The new CEO, Eduardo Menezes, seems to have the right playbook.

Strategic Vision

New management has unveiled a strategic vision targeting high single-digit EPS growth from 2026 to 2029, which indicates a positive long-term growth plan.

Negative Factors

Earnings Guidance

The company lowered its full-year earnings guidance, which suggests a less optimistic outlook for its financial performance.

Financial Performance

Air Products and Chemicals, Inc. reported earnings and EBITDA that were below estimates, impacting its financial performance negatively.

Project Risks

APD has a few projects with dubious financial merit in Louisiana and NEOM that must be worked through.

Air Products and Chemicals Business Overview & Revenue Model

Company Description

Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and services worldwide. The company produces atmospheric gases, including oxygen, nitrogen, and argon; process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, syngas; specialty gases; and equipment for the production or processing of gases comprising air separation units and non-cryogenic generators for customers in various industries, including refining, chemical, gasification, metals, manufacturing, food and beverage, electronics, magnetic resonance imaging, energy production and refining, and metals. It also designs and manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction, and liquid helium and liquid hydrogen transport and storage. Air Products and Chemicals, Inc. has a strategic collaboration with Baker Hughes Company to develop hydrogen compression systems. The company was founded in 1940 and is headquartered in Allentown, Pennsylvania.

How the Company Makes Money

Air Products generates revenue primarily through the sale of industrial gases, which account for the majority of its earnings. The company has a diverse revenue model that includes long-term contracts, on-site gas production, and bulk deliveries. Key revenue streams include hydrogen production and supply, which is essential for refining and chemical processes; oxygen and nitrogen for steel manufacturing; and specialty gases for electronics and healthcare. APD benefits from significant partnerships with major industrial customers, as well as strategic collaborations in the energy transition sector, particularly in hydrogen and renewable energy projects. Additionally, the company invests in technology and infrastructure to enhance its production capabilities and optimize operations, contributing to its financial performance.

Air Products and Chemicals Financial Statement Overview

Summary

Air Products and Chemicals exhibits a solid financial foundation with strong operational efficiency and profitability as seen in their income statement. However, challenges are present with fluctuating revenues, increasing debt levels, and constrained free cash flow due to substantial capital expenditures.

Income Statement

The income statement reveals a mixed performance. The Gross Profit Margin for TTM (Trailing-Twelve-Months) is 8.98%, indicating efficiency in managing production costs. However, the Net Profit Margin is 12.86%, suggesting solid profitability, albeit lower than in previous years. Revenue has shown signs of fluctuation, with a decline from 2024 to the TTM period. Despite this, EBIT and EBITDA margins remain strong at 12.70% and 20.74%, respectively, signaling operational efficiency.

Balance Sheet

The balance sheet highlights a stable financial position but with increasing leverage. The Debt-to-Equity Ratio has increased to 1.03, reflecting higher debt levels. Return on Equity (ROE) stands at 8.72%, indicating moderate returns on shareholders' investments. The Equity Ratio is 42.64%, showing a balanced capital structure but with room for improvement.

Cash Flow

The cash flow statement presents challenges, particularly in free cash flow management. Despite a robust Operating Cash Flow to Net Income Ratio of 1.90, the Free Cash Flow to Net Income Ratio is 0.57, indicating that significant capital expenditures are constraining free cash flow. The Free Cash Flow Growth Rate shows improvement compared to previous years, reflecting better cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.06B	12.10B	12.60B	12.70B	10.32B	8.86B
Gross Profit	3.84B	3.93B	3.77B	3.36B	3.14B	3.00B
EBITDA	3.27B	6.49B	4.42B	4.22B	3.97B	3.72B
Net Income	1.55B	3.83B	2.30B	2.26B	2.10B	1.89B
Balance Sheet
Total Assets	41.66B	39.57B	32.00B	27.19B	26.86B	25.17B
Cash, Cash Equivalents and Short-Term Investments	2.32B	2.98B	1.95B	3.30B	5.80B	6.36B
Total Debt	18.34B	15.01B	11.03B	8.33B	8.22B	8.31B
Total Liabilities	23.89B	20.90B	16.34B	13.49B	12.77B	12.73B
Stockholders Equity	15.54B	17.04B	14.31B	13.14B	13.54B	12.08B
Cash Flow
Free Cash Flow	-4.63B	-3.15B	-1.42B	303.70M	877.70M	755.70M
Operating Cash Flow	2.95B	3.65B	3.21B	3.23B	3.34B	3.26B
Investing Cash Flow	-5.83B	-4.92B	-5.68B	-3.86B	-2.73B	-3.56B
Financing Cash Flow	2.80B	2.62B	1.37B	-1.00B	-1.56B	3.28B

Air Products and Chemicals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 291.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APD, the sentiment is Negative. The current price of 291.28 is below the 20-day moving average (MA) of 291.76, above the 50-day MA of 290.76, and below the 200-day MA of 292.29, indicating a neutral trend. The MACD of 1.02 indicates Positive momentum. The RSI at 49.09 is Neutral, neither overbought nor oversold. The STOCH value of 26.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APD.

Air Products and Chemicals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LIN	77 Outperform	$224.27B	33.71	17.51%	1.25%	1.28%	6.91%
SHW	72 Outperform	$91.21B	35.84	62.43%	0.85%	0.31%	2.66%
EMN	69 Neutral	$7.97B	9.75	14.52%	4.88%	1.60%	-3.97%
APD	68 Neutral	$65.03B	42.00	10.26%	2.44%	-0.38%	-39.53%
DD	67 Neutral	$31.73B	40.24	0.31%	2.13%	4.55%	-130.25%
PPG	64 Neutral	$25.10B	19.43	16.88%	2.52%	-10.59%	-7.79%
Sector *	61 Neutral	$10.26B	6.17	0.86%	2.93%	3.10%	-36.03%

Air Products and Chemicals Corporate Events

Air Products Elects Howard Ungerleider to Board

On August 18, 2025, Air Products and Chemicals, Inc. announced the election of Howard Ungerleider to its Board of Directors, effective September 1, 2025. Ungerleider, with extensive experience in the chemicals and specialty materials industries, will serve on the Audit and Finance Committee. His appointment is expected to enhance the company’s operational excellence and capital management as it continues to focus on creating exceptional value.

Air Products EVP Sean Major Resigns Effective July 11

On July 7, 2025, Sean D. Major resigned from his position as Executive Vice President, General Counsel and Secretary of Air Products and Chemicals, Inc., effective July 11, 2025. The company has yet to announce his successor, and Mr. Major will receive severance and benefits as per the Executive Separation Program, which was detailed in the company’s 2025 proxy statement.

Air Products Issues $1.1B Notes and €500M Eurobonds

On June 9, 2025, Air Products and Chemicals, Inc. entered into underwriting agreements for the issuance and sale of $1.1 billion in U.S. Notes and €500 million in Eurobonds. The proceeds are intended for general corporate purposes and to repay commercial paper obligations, potentially strengthening the company’s financial position and market presence.